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Posted by
Gentleman
4 months ago

ELI5: Why is Cardano a Top10 Crypto?

I am not trying to shit on this coin. But every person I have met in real life that is involved in cryptotrading has no clue and keeps wondering the same. And it is also one of the few coins where I don't see daily/weekly shills on this sub. I don't understand how it stands out uniquely from the others, what are its potentials? Try to convince me why I should be interested in it.

Thanks guys.

310 comments
94% Upvoted
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873 points · 4 months ago · edited 4 months ago

So the first thing that should probably be noted, is that Cardano has been around since 2015, but since 99% of the holders are from Japan it didnt really set foot here on reddit for a long long time, thus people are a little bit irritated how such a coin is getting up there, that nobody knows. Its not a new Coin that got hyped for their whitepaper and its not some crazy idea (decentraland, singularity). Most people would say Cardano tries to squeeze the best of Bitcoin (store of value), Litecoin (cheap, fast p2p transactions), and Ethereum (smart contracts) into one coin. So thats the easiest description of what they are trying to do. The thing that stands out the most (to me at least) and is why im holding this since 0.06 cents, is the fact that they are delivering on their roadmap time and time again, on time and a lot of times even beating their own deadlines. Plus they have one of the most active githubs i've seen so far. So for everyone telling you its a coin with nothing but promises, yes it is, but only if you dont dig deeper and are unable to see the bigger picture. They are delivering on their promises since this coin started existing.

So these were just my experiences with holding ADA. Lets get to the shilling:

Its the only peer-reviewd cryptocurrency that is out there for now (where peer-review means, they pay well-known professionals outside of their team to review their ideas and codes). And its still open-source and people are able to review the code themselfs. So one thing doesnt rule out the other.

Charles Hoskinson, former "CEO" of ETH and ETC (if i remember correctly) is one of the founders of this project aswell.

Aggelos Kiayias is chair in Cyber Security and Privacy and director of the Blockchain Technology Laboratory at the University of Edinburgh and designs Ouroboros, the Provably Secure Proof of Stake for Cardano.

Philip Wadler, one of the most influential people in functional programming (including Haskel) got hired by IOHK, which is the foundation that launched Cardano.

What else do we have? People say Ark has a nice, easy and beautiful wallet, go check out the official ADA-Wallet: Daedalus. It has fast transaction times with minimal fees.

So am I 100% confident that this coin will deliver on their promises? Yes. Am I 100% confident that they will take over the market? No. Depending on how and when Ethereum are inplementing their PoS-System, how the market developes, what Bitcoin will become, what XLM will do blablablabla... Nobody knows anything but the fundamentals are there and in my opinion its a medium risk/medium reward coin. Is it overpriced for what it has to offer right now? Hell yeah, but thats not how investing works. If you only invest into a coin that has multiple householdname partnerships, a fully working blockchain, smartcontracts and minigames on the blockchain, you are too late.

One more point why its going up so much even though people dont know it is the fact that 90% of the volume on the exchanges we use come from Japan/Korea anyway and THEY know the coin and what it might be capable of.

Ever heard of virtual machines that translate programming languages? Cardano has that going for them too. The virtual machine (iele) is one of the most advanced of its kind. Its been in development for years and was built by a contractor of Darpa and Nasa (Runtime verifications ltd) Developers can code in common programming languages - Java Python etc. and it will automatically translate into Haskel. This will enable enterprise adoption.

There is so much more to Cardano but I think as a starting point this should be enough, this is ELI5 anyway. Feel free to join r/cardano, look at the website... blabla.

277 points · 4 months ago

possibly the most level headed even handed response to anything i have ever seen on /cryptocurrency. well played mate.

2 - 3 years account age. 300 - 1000 comment karma.
7 points · 4 months ago

VMs that translate programming language.. That's innovation

Source: I work in IT so clearly I know everything about every facet of IT even though these days I specialize in voice/video/networking solutions

2 - 3 years account age. 150 - 300 comment karma.
6 points · 4 months ago

now everything about every facet of IT even though these days I specialize in voice/v

As a software engineer - this isn't unheard of tbh; https://en.wikipedia.org/wiki/Java_virtual_machine is commonly used :) The real win are the languages that let you convert to a language that isn't difficult to write smart (solid) contracts in!

2 - 3 years account age. 300 - 1000 comment karma.
3 points · 4 months ago

I learned something today. Honestly my comment was a joke for clarity.. we all know things can get vastly different in deep in any variance of difference even within the same space such as "IT"

2 - 3 years account age. 150 - 300 comment karma.
2 points · 4 months ago

get vastly different in deep in any variance of difference even wit

Oh haha! It was probably me and I'm just an idiot for missing the joke.

2 - 3 years account age. 300 - 1000 comment karma.
1 point · 4 months ago

Understandable - you software engineers don't git things immediately. You guys have to go through this whole process unlike us configuration cowboys.

ISWYDT

8 more replies

Gentleman
Original Poster104 points · 4 months ago

The type of response I have been looking for. Thanks!

Well, when your cryptocurrency gets attacked by 90% of reddit for no apparent reason, you have to learn to describe why it is a good investment without sounding condescending. I guess its the Cardano way :>

It is kind of crazy how much hate and lies are spread about Cardano...

Trader
3 points · 4 months ago

Never seen any, where?

Comment deleted4 months ago(1 child)

It was a square root symbol, found in calculators, thousands triggered. many reduced to overdosing on Nyquil to end it all.

Every couple weeks someone asks the exact same question op asks. Then the first 10 top comments are all people saying it's vaporware, no product etc etc. It's obvious they don't do any more research on the product then looking at its numbers on coinmarketcap. Now seeing the first couple top comments being actual logical explanations of what it is and seeing them pushed to the top and not bottom is nice.

Charles Hoskinson: raving lunatic, or devious psychopath? More at 11.

2 more replies

3 points · 4 months ago

Scroll to the bottom of this exact thread.

I'd rather not link to any of the fud articles, but go ahead and follow @iohk_charles and see the shit and slander that is thrown at this man. It's pretty horrible. You could also just search cardano in this subreddit and you'll see, very few discussions are positive (and most a backed by character assassination attempts and unfounded and unsupported claims)

Trader
4 points · 4 months ago

Most of the stuff here I don't even give two thoughts about. 99% of this sub is stupid lambo (which i'm trying to change to Tesla) memes, and idiots that hate any coin they don't hold. I'm big on IOTA and Ripple, and they are both despised by everyone here. IOTA was even hated by a mod that would remove anything that was positive about IOTA. The main mod removed him as a mod once evidence was brought forward.

Why do I see all this iota shilling in here then?

3 more replies

Redditor for 5 months.
1 point · 4 months ago

There's this rivalry with the EOS guy, I think.

Just a week ago I saw a +92 comment that grouped it in with Tron and Bitcoin Gold as "garbage".

http://goedhartvoordieren.nl/?page=r/CryptoCurrency/comments/7xya42/request_network_project_update_february_16th/duc7q6r/

Futures Trained
10 points · 4 months ago

Yeah I am kinda shocked to see the sentiment about ADA here. Seems like what I would consider Reddit's kinda coin.

Redditor for 12 months.
2 points · 4 months ago

And by Charlie Lee

10 more replies

Redditor for 8 months.
11 points · 4 months ago

I feel like this kind of discussion about ADA has been overdue in this subreddit. Alot of people here don't really know much or anything about it and it's refreshing to see the project being discussed fairly. The lack of presence I see just indicates to me more of a lack of ADA shills which is a good thing, unlike the rampant shills of many of coins on this subreddit.

That's gotta be the first fair discussion about ADA on this subreddit. Usually it gets spat at and downvoted for no apparent reason other than plain ignorance.

/u/Brunswickstreet did a great job, but even his write up just scratches the surface. Cardano is a huge project, with arguably the worst marketing in the space. Get over to YouTube and look up IOHK (the engineering and research firm building Cardano) and check out their whiteboard series. Make some popcorn, you got a lot of catching up to do

[deleted]
4 points · 4 months ago

I'm fine with it staying that way for now

The philosophy they live by is that the product will speak for itself.

2 more replies

Trader
6 points · 4 months ago

Ethereum has a CEO?

Observer
8 points · 4 months ago

It's in quotes.

had

4 - 5 years account age. 250 - 500 comment karma.
1 point · 4 months ago

Now they just have dictator

Redditor for 8 months.
11 points · 4 months ago

i had the same question as the OP and this really helped me learn about ADA

THANKS!

I'm absolutely astonished the first comment on a Cardano post is not someone completley clueless of the coin saying it's nothing but vaporware.

You, I like your shilling, makes me feel like I have the choice still instead of BUY, BUY, BUY.

Futures Trained
4 points · 4 months ago

I own ADA. I dont think I would label it as a buy. I think it is pretty aggressively valued. I would say it could be a BUY if and when the Orobourous system is implemented. It would be a big moment in crypto to have a functional and stable PoS coin.

But i dont see it as more valuable than Eth or BTC right now. It doesnt have much room to grow in market share

Redditor for 6 months.
4 points · 4 months ago

Ouroboros is already implemented, its just a matter of which version of the Ouorboros protocol. Current version is plain Ouroboros encryption. Next version is Praos, and two versions from now will be Hydra.

Futures Trained
5 points · 4 months ago

True, but i meant more about the decentralized next age. Right now there is no public staking, I believe they own all the nodes running Ouroboros right now (maybe I am wrong).

My comment meant to convey i think a public decentralized PoS coin would be very enticing and important

Redditor for 6 months.
2 points · 4 months ago

I get what you are saying brother. All nodes and wallets are running the Ouroboros protocol. Your wallet would not work if it were not communicating correctly using the Ouroboros protocol. The central nodes are simply nodes that are forced to be slot leaders while Praos is being developed.

I just like to make sure information is correct. Too many pundits out there on reddit like to bash Cardano.

Futures Trained
4 points · 4 months ago

Oh totally agreed, thanks for educating me. I knew they control the nodes, i didnt know they are actually running the protocol just forcing in slot leaders. Good to hear its actually being run and it wont be going live for the first time when the next age starts.

I like ADA a lot, i think its a great project as someon who is long blockchain tech as a concept. I see the Cardano team being a driving force in innovation and technology. They will do a lot for the space

Redditor for 6 months.
2 points · 4 months ago

I really like the tech behind Ada too. Both fast and secure. I did some transfer speed testing between two wallet nodes at my house and it’s averaging 18 seconds per transaction.

Redditor for 27 days.
1 point · 4 months ago

You are correct. I feel the same, once it is fully decentralised I will buy some more.

ADA will be decentralised in April (start of the Shelley Era)

Roadmap here: https://cardanoroadmap.com/

2 points · 4 months ago

The whole reason you invest is so that if a company follows through you are going to make money, why would you wait until they roll out working product?

Futures Trained
1 point · 4 months ago

Put it to you this way. Their upside between now and, let's say July, is low. They don't have many major updates plan. I'll probably buy more before then but I see better opportunity for capital between now and then.

What? Ouroboros is releasing, it’s one of their biggest announcements.

Nice writeup. But..:

Developers can code in common programming languages - Java Python etc. and it will automatically translate into Haskel.

It has been done a million times and has always ended in spaghetti code which is impossible to debug and in the end broken applications. For their own sake o hope they abandon this approach.

IELE virtual machine will give 3 ways to program smart contracts:

  1. Program in Plutus - A highly secure functional programming language created for serious smart contracts.

  2. Program in Solidity, or port a project over from the Ethereum blockchain using the KEVM compiler.

  3. Program in the language of your choice - once the semantics and syntax of a language are created, you can theoretically program smart contracts in any language. There will be no limitations, as opposed to most other platforms only offering a few languages (or in some cases only one) to choose from.

https://runtimeverification.com/blog/?p=498

Comment deleted4 months ago(1 child)

IELE is based off of LLVM so it has similar capabilities. This means that just like Clang, rustc, GHC, etc compile from some native language (C, C++, ADA, Haskell, D, Rust, FORTRAN, etc) into LLVM IR and then LLVM compiles the IR into native executables, IELE is designed to have front ends attached to it to compile any language someone wants to design a front end for into IELE IR and then run on the VM.

An added benefit is that because it is so similar to LLVM, adapting existing front ends (Clang, Rustc, etc) to IELE is fairly trivial compared to writing a brand new front end.

2 more replies

Redditor for 7 months.
4 points · 4 months ago

Runtime Verification doesn't typically mess around with ideas that have no chance of working. Haskell opens up some new doors that might surprise some people. They are launching a testnet for the IELE virtual machine in the next month or so. This should give us some more insight on the accuracies or inaccuracies of the VM and K Framework.

5 more replies

Redditor for 7 months.
4 points · 4 months ago · edited 4 months ago

Its the only peer-reviewd cryptocurrency that is out there for now (where peer-review means, they pay well-known professionals outside of their team to review their ideas and codes).

Small correction: Cardano has been "peer reviewed" in the academic sense. Much of IOHK's work has been accepted for presentation at formal academic conferences on cryptography and computer science, which require scholarly peer review in the same way that academic journals do. In CS and related fields, conferences are actually more competitive and prestigious than journals are.

What you're describing sounds more like a normal code audit, which would've been way easier to pass.

Other than that, great write up!

Can't forget, Cardano goes even further and has a 3rd party code auditor as well

Redditor for 11 months.
5 points · 4 months ago

To be fair, all three of the team members you listed work for IOHK and are not a part of the Cardano Foundation itself. IOHK works with a many projects, so those three names would be just as relevant to ZenCash, Ethereum Classic, RSCoin, Qeditas, etc.

IOHK is the company that developed Cardano and according to the Cardano website: “IOHK ... holds the contract to develop the platform until 2020. “. So there’s really no guarantee that any of those team members will still be around after two years.

...Just trying to provide some context about the team

The project will be fully completed by 2020. The users of system will decide whether IOHK gets their contract renewed vs other developers that bid against them - using the funds from the treasury system.

Redditor for 11 months.
2 points · 4 months ago

Interesting. Good information.

However, no project in crypto will ever be “fully completed”. Development is a never ending process.

I agree, poor wording on my part. Completed in a sense of promises from the roadmap.

Comment deleted4 months ago(1 child)
Redditor for 7 months.
1 point · 4 months ago

They did the ICO beginning in 2015. It was 95% Japanese investors. Not sure what English speaking group would have been discussing it much in an entrepreneurial sense before it was available on exchanges?

Redditor for 7 months.
2 points · 4 months ago

Sure, I get that there is potential, but I still don't see why it's in the top 5 based purely on that. I guess this market doesn't have to make sense

Thanks for this. Very insightful.

4 - 5 years account age. 70K - 80K comment karma.
2 points · 4 months ago

My god you’re giving me massive FOMO right now. Is now a good time to buy in!!?! Someone tell me what to do dammit

Now is a bit better

2 points · 4 months ago

Cardano tries to squeeze the best of Bitcoin (store of value), Litecoin (cheap, fast p2p transactions)

You do realize that Litecoin is only faster than Bitcoin because of 2.5 min block delay target and is only cheaper because of lower demand? Right?

Redditor for 11 months.
7 points · 4 months ago

Only thing I would say about is ADA is it is a top 10 coin so thus your late to the game to make big gains. If its still not a working product and is a top 10 coin is just overpriced. You got in at a good price though, did you get it at ICO? Most of the top 10 coins have a working product are not far off from being adopted or already being used. Good write up though.

FYI:

- Cardano ICO price started at 0.0024$ in Japan only to businessmen

- 1st October 2017 launch on Bittrex it stayed around 0.025$ for 2 months

- December rally: it shot up to 1.30$ only to drop with all the other coins in january at its current price (0.30$-0.40$)

Why is it late to the game? Cardano's target market if achieved will put it in at the trillion dollar marketcap level - which in 5 years would put the price anywhere from $40 - $100. Only in crypto is 100x-200x times gains not good enough.

Redditor for 11 months.
9 points · 4 months ago

Trillion dollar market cap just for cardano??? Like are you really thinking it hits that ??? It still has to beat out alot of other coins not to mentoin all of crypto hasnt broken 1 trillion yet. I think we hit 2 trillion by 2019. But to think 1 coin will have a trillion market cap by 2023 is kinda crazy

In 2013 and 2014 the overwhelming consensus was that Alt coins were just useless pump and dumps. So many people shit all over Ethereum. Now look at it. Alt coins are legitimate. Today, doubt is cast upon the possibility of large marketcaps as opposed to doubting the legitimacy of alt-coins. In 4 years, that will be proven a misplaced doubt as well.

Not to mention the marketcaps that we see today are purely from speculation. Come 2020 we should have some fully developed products that will be ready for adoption.

Redditor for 7 months.
8 points · 4 months ago

The thing to understand about Cardano, is that they are truly trying to become a one-stop-shop protocol for being able to execute most use cases that cryptocurrencies are trying to solve. Oh, and all while maintaining an extremely high level of verifiable security. The target is lofty, but if it is pulled off, it could certainly hit one trillion down the road. If you think we've seen the boom in cryptos already, I think you might be in for a big surprise. Most investors won't come in until there are use cases, and real world adoption exists.

Now, don't get my message mixed up. I am not saying Cardano will hit a trillion, and I'm not saying it is the only coin with that potential. BTC, ETH, LTC, NEO, blah blah blah... All of these coins could hit a trillion as well. As U/ThePatient75 pointed out, just a few years ago, ETH was a small alt coin that was being crapped on. It has blown up since, and still has yet to gain much real world use on any kind of scale. The next couple years will be fun, I'm just glad that we are all on the ride together!

RemindME! 5 years "Cardano Marketcap"

2 more replies

Redditor for 8 months.
1 point · 4 months ago

Market cap rank has little to do with potential future growth. Ethereum was in the #2 spot when it was still only $10 last year.

Cheers. Well done

Redditor for 7 months.
1 point · 4 months ago

Thank you for an excellent insight. I've also been wondering the same as the OP.

Wow. You make me wanna buy some hahah

8 more replies

Redditor for 7 months.
14 points · 4 months ago

Daedalus is really pretty.

Redditor for 4 months.
29 points · 4 months ago · edited 4 months ago

They are looking to take on 3 issues that are in cryptocurrency, they want scalability, interoperability, and sustainability.

In scalability, they designed the Ooroborus system which uses proof of stake system has been rigorously reviewed by academics and experts in the field. It runs by having an epoch that is split into multiple slots. The network selects a slot leader who can only mine for that slot. The slot leader verifies the transaction, all while being able to run multiple epochs in parallel, allowing for tens of thousands of transactions per second. They are also working on a staking system that allows for pooled staking built into their official wallet for convenience.

The next issue with scalability in cryptocurrency cardano is bandwidth. Since usually in blockchains each node normally makes a copy of each transaction done on the network and with cardano being able to have thousands of transactions per second, it would require a huge amount of bandwidth to keep up with the thousands of transactions. To solve this they will split the network into subnetworks by a system called RINA (recursive internetwork architecture). Data scaling is the next part of scalability that seems to be the hardest part of any crypto currency. The storage of every transaction will eventually add up to a large amount of memory. Through techniques such as pruning, subscripts, partitioning, and compression. They are also heavily reviewing sidechains which will assist in using interoperability. The great thing about this project is their academic review. They use heavy peer review and testing before they can impliment a potential solution to problems. While they are still perfecting their product I have the complete faith they will come to a solution.

The next large issue Cardano wishes to tackle is Interoperability. Cardano plans to communicate with other blockchains and allow one to swap from say Dash to Monero. (I believe I am pretty sure). They plan to be able to have cross platform functionality, meaning I can send ether to a friend in exchange for cardano. With interoperability Cardano will use sidechains to allow cross platform functioning. But they don't plan on simply telling people to download the whole blockchain of another crypto currency. Cardano wants to use sidechains which can be learned mroe by the published paper of Andrew Miller, Aggelos Kiayias, and Dionysis Zindros. This link below is their published paper and link to a video where they explain this is below. https://iohk.io/research/papers/#67CHCNP8 The next part of interoperability is the point with banks and governments. Banks like to have metadata for transactions. Cardano will give you the OPTION to attach metadata to a transaction so they can play nicer with the world. This is trying to bridge the gap with the outside world. I can only emphasize the bridging of the gap.

The third and final part of the project is taking on is sustainability. Often other blockchains only receive their ICO funds for the development of their project and then that is it. They no longer have continuous support for cryptos to keep supporting the development of the project. Cardano will solve this by making a treasury that takes a VERY MINOR percentage of each transaction and stores it in a community wallet that isn't controlled by anyone. The funds are used when a developer wants to improve the Cardano protocol. The developers submit a proposal what they want to change and how much they need for it. After a period of time, the community will vote on the most important one, where the person who proposed the most liked idea is funded a portion of the treasury to make what they proposed. This ensures that the development of technology will continue. This will allow democracy in the blockchain and includes the stake holders in the development and the direction of Cardano.

I love this project because they update their progress in development every week.

They move slow not because they are lazy, but because they want it to be heavily reviewed without flaw.

I highly recommend this video where the Charles Hoskinson(founder) speaks about this. https://www.youtube.com/watch?v=Ja9D0kpksxw

Below is where they show the progress in their development. https://cardanoroadmap.com/

For those that say it hasn't made anything here is a visualization of the project. https://www.youtube.com/watch?v=YtSfJqP04cQ

this is the best write up ive seen on cardano. thanks.

Redditor for 4 months.
2 points · 4 months ago

If you have anymore questions please feel free to message me!

For those who want to see how much they update the community, check out this. They hired an outside firm who goes over their weekly progress and post their evaluation on the Cardano Site

5 - 6 years account age. 75 - 150 comment karma.
70 points · 4 months ago · edited 4 months ago

I can't speak for everyone so take my perspective for what you will.

tl;dr: I believe crypto is the future, and when I'm looking to who is capable of designing a set of technologies and protocols that are robust to hacks, address governance, and scaling, I trust a team of badass scientists.

Background:

I am a scientist (CS/ML) and an engineer (CTO of a healthcare tech company), and years of research and programming have ingrained in me (and I assume many like-minded fans of Cardano) the virtues of rigorous work to create solid foundations. It is this inherent philosophy that IOHK employs that I find imperative for a project that aims to be such an important piece of the future world's economy. In my opinion, it is relatively trivial to write software that is clean, performant, and delivered on time, but designing systems to be resilient to adversaries (e.g. protecting sensitive health information, mission critical security mechanisms) is much more complex, of utmost importance, and necessitates a disciplined, academic approach. There are a few specific things I'd like to point out:

Scientific peer review

I think much of the public are unaware of what this actually means. It is not code review, nor is it simply posting a whitepaper to the general public. IOHK ensures that their methodology is well-researched and accepted to major conferences. Acceptance means that a panel of domain-experts have understood the paper's claims to be true. In the case of Ouroborus, their POS protocol, IOHK has mathematically proven that under given constraints, adversaries will be unable to compromise the system.

ELI5: IOHK tries write out a promise that their machine can't be broken by bad people. Cryptography gods yell at them until they get it right. Then they smile and give a thumbs up.

Functional Programming / Haskell / Formal Verification

They've done all the work to develop mathematically sound protocols, so it makes sense that they want to ensure that this is translated to code. Unlike imperative programming, which due to it's stateful nature and side effects, makes it hard to reason about in a mathematical way, functional programming is much more declarative and thus conducive to formal verification. Through formal verification, we are able to prove correctness of code using formal methods in math. This is very important in the hardware fields, as manufacturers must ensure that "hardcoded" programs will work before fabrication. This sort of Software Assurance is also heavily employed at NASA (and probably SpaceX), as well as nuclear industries. I personally, would like to have a formally verified codebase that is responsible for billions/trillions of dollars worth of cryptocurrency.

ELI5: If the most secure software was a drawing of a 1"x1" square, some programmers use a few pieces of paper, draw parts of the square on separate pieces, and tape them together (imperative programming e.g. C/C++, python). IOHK use a single piece of graph paper (functional programming), and then a ruler to make sure it's correct (formal verification).

But where's the product?

I see this comment often regarding the Cardano project. As with all of these coins, value is mostly derived from speculation. The IOHK team provides a well-defined roadmap and has yet to underdeliver. I suspect that a large population sees value in the methodology and thus are hodling. But to reiterate, as you cannot set a deadline for the cure for cancer and expect scientists to deliver, there are key topics that IOHK are still studying and proofs need to be written and validated, which takes time and certainly cannot be promised at any given date.

Tech demos say nothing about security. I implore anyone to always keep security as a top value. I can create a simple p2p application that can send "currency" instantly, but that says absolutely nothing about security. Remember that the underlying namesake, "cryptography", is about security and information integrity. So next time you are choosing your next favorite coin, the one you're willing to put your hard-earn money into, ask yourself: Is it secure? How do I know for sure? Am I just FOMOing because of partnerships and/or shiny tech demos? And don't blindly point to a whitepaper. If you can't understand the whitepaper yourself, that doesn't give reason to naively defer to an authority. While some are seeing this as just investment akin to picking stocks, I see this as a more important decision: If we as a community want cryptocurrency to succeed, we need a technology that the world deems worthy of replacing hundreds of years of monetary systems. Adoption is one aspect, but science and theory is certainly a compelling reason for many.

ELI5: If you want to send money to someone, would you send it with a crotch-rocket or an armored car?

EDIT: grammar, additional thoughts

This needs to be higher up. People are too short-sighted to see how important laying down a solid foundation is, and why it doesn’t matter that’s it’s not ready now. It will be ready when 95% of the cryptos out there currently with “working products” have been compromised in some way because amateurs (relative to the Cardano team) rushed out a run-of-the-mill project to catch the wave and make a quick buck.

4 more replies

1 point · 4 months ago · edited 4 months ago

Your ELI5s are like most ELI5s in crypto — more like "take me for a ride like I'm five".

The argument in the first one is erroneous — it says nothing about how the other "machines" on the market are any less secure. Also, a useless machine that can't be broken by bad people is useless nonetheless.

The other two are blatantly false analogies. "See, Cardano is like the Saturn V rocket that got the man on the moon, and all the other currencies are like beat up Honda Civics which obviously won't get you anywhere near the moon. Now, do you want to go to the moon or not?"

This reddit account was bought for one purpose only - this post, just look at the post history...

1 more reply

Redditor for 10 months.
157 points · 4 months ago

Great team, interesting promises, no product, idiot market. Cheers.

Gentleman
Original Poster64 points · 4 months ago

So like 98% of the cryptomarket then?

Does 98% of the cryptomarket employ PhDs from top universities or creators of well'recognized programming languages?

Altcoiner
3 points · 4 months ago

Definitely read that as 'PnD' and was wondering wth did I miss in the 3 hours I wasn't checking the market.

[deleted]
4 points · 4 months ago

Yes, the other 2% are in the top 10.

1 more reply

Redditor for 4 months.
3 points · 4 months ago

Since a lot of people prefer to see before they believe below is a visualized representation of its development.

https://www.youtube.com/watch?v=YtSfJqP04cQ

The Ooroborus system is an example of their product, the sustainability of the project. People have to remember it is still in bootstrap phase.

Redditor for 7 months.
3 points · 4 months ago

I think you're over-simplifying. What is bitcoin's product? It can move value around at speeds that are way too slow for real world adoption? What is Ethereum's product? A smart contract system that allows devs to easily create bugged Dapps? A network that is crippled by a viral Dapp or two running on it?

My point is that while all of these are great concepts, they are not working products. If I gave you an iPhone that took 5 mins to turn on, had apps that took 10 mins to load and required a 20 min heads-up before it could connect a phone call, would this be considered a working product? Most likely not. Because of their lack of scalability, ETH and BTC are both scrambling to find solutions to build out their networks.

Another question... If I told you that BTC and ETH both were going to stay EXACTLY the same as they are for the next 2 years, what would their value be? Probably a lot less. Why is this? Well, it's because of the potential. This is what all investments are built around--the idea that new ideas and concepts will be researched and implemented in the future. For this reason, I think measuring a project strictly by what it has done is not the best metric. Instead, looking at goals and measuring the likelihood of success is likely a better option in this space.

Bitcoin's product is highly liquid value that you can hide out of a government's reach.

Ethereum's product is basically that plus PoWH and token creation.

NEO fan
13 points · 4 months ago

Well... you're not wrong

Futures Trained
9 points · 4 months ago

What do you mean by no product? You can buy/sell and transfer ADA just as easily as you can any other crypto.

Observer
18 points · 4 months ago

Is that the product they're selling? A coin that you can transfer?

Futures Trained
7 points · 4 months ago

Well it is currently a function crypto currency. It is about as functional as plenty of coins right now.

Best sales pitch I've ever seen.

Futures Trained
4 points · 4 months ago

Not trying to shill, just want to point out that i dont think ADA is being analyzed like other coins.

Plenty of other coins are valued looking at future project developments, not current technology.

Redditor for 7 months.
8 points · 4 months ago

but they are not at spot 5 with a valuation of 10 billion :D

What can the other three of the top five besides Ethereum do?

3 more replies

Futures Trained
1 point · 4 months ago

Sorry I meant on reddit. I actually think the market is pretty aggressive in their valuation of ADA. Not that I disagree it just seems on the upper limit of my comfort level.

2 points · 4 months ago

Not just a coin you can transfer, but one that's 100% going to the moon! Like, you know, most products on the current market.

Redditor for 6 months.
6 points · 4 months ago

The current product - the way I see it being 'marketed' is that Ada and the Daedalus wallet is as secure as Bitcoin without the power consumption of POW. Not bad.

soooo...like bitcoin you say?

Redditor for 8 months.
1 point · 4 months ago

And what does bitcoin?

Bitcoin is a shitcoin. How this sub feels about bitcoin varies depending on how much money blockstream puts into the budget for shilling.

I can assure you bitcoin only holds that number 1 spot because of it's name. Any coin that came out today that was a mirror of bitcoin would be considered a shitcoin.

Any coin that came out today that was a mirror of bitcoin would be considered a shitcoin.

Only because there's Bitcoin already. If all we had was Nano, IOTA, BitShares, XRP and FileCoin, we would still be basically in pre-Bitcoin era, barely having made any progress since Hashcash or whatever it was called.

1 more reply

Sia Fan
6 points · 4 months ago

The platform is kinda useless

Futures Trained
4 points · 4 months ago

Is it currently useless, or is it aiming to be useless in the future

Sia Fan
3 points · 4 months ago · edited 4 months ago

Currently. They are following the whitepaper very good, and while the ambitions aren't too big the technology makes up for it. Not top 10 material imo but also not a shitcoin

Edit: I am marginally retarded my brothers. Saying cardano's ambitions aren't too big while I meant that cardano's uses aren't too big

Futures Trained
4 points · 4 months ago

Yeah i mean i look at it like this.

I am not investing in crypto for now. I am doing it as an investment in the future.

I think ADA has a good vision of future (their emphasis on PoS, platform for smart contracts, sharding etc) and isnt caught up by short term profits.

I think it is being valued highly now because people feel like it has a high % chance to be a good coin in 2 years. Unlike a lot of other coins which are super right now, but crypto is in its infancy.

Redditor for 7 months.
2 points · 4 months ago

The ambitions aren't too big? My biggest concern for Cardano is that it is being overly ambitious. A DPoS protocol, with a settlement layer separated from the computational layer, that will support sidechains which are interoperable with other blockchains (yes, you will be able to move your BTC, LTC, BCH, etc from their native blockchains onto the Cardano protocol and transfer them). It wants to achieve all of this, while scaling to billions of users in a Bittorrent like fashion, meaning more users = more speed and better access to resources. Oh, it will also have its own governance system with a treasury to allow the community to vote on what future updates they want to fund to build out the protocol.

Redditor for 27 days.
2 points · 4 months ago

It's definitely ambitious. But they also have a huge budget, so they have a good chance to achieve. I think the size of their kitty has a lot to do with their valuation.

Cardano's ambitions aren't too big? Have you been sleeping in a cave lately? There aren't many coins that are developing Sidechains, NiPoPoW, NiPoPoS, a VM able to translate any K-defined language to their own protocol language, Quantum resistant sigs etc etc...

If you want to FUD on a coin, that's fine by me, but at least be honest.

2 points · 4 months ago

I call bullshit, if bitcoin cash is in top 5 cardano deserves a spot.

Sia Fan
1 point · 4 months ago

Bitcoin cash is another type of autistic

Redditor for 9 months.
6 points · 4 months ago

Whats great about the team? What are the promises?

Futures Trained
3 points · 4 months ago

They have a pretty rigorous and detailed road map. Here is a link. Next goal is the implementation of their PoS system and with it the decentralization of their network

1 - 2 years account age. 200 - 1000 comment karma.
7 points · 4 months ago

Ceo is co founder of ethereum. Promises is better ethereum

I think any unbiased investor will admit they have the best team of any crypto, full of top tier scientists, etc.

IOTA fan
1 point · 4 months ago

Way better response than the first one !!!! Good job mate!

Don't forget "all-in-one"

3 more replies

Redditor for 4 months.
7 points · 4 months ago

I'll be the first to admit that I don't totally understand the technology behind Cardano, but being from Japan let me tell you that this coin is HYPED there. Think about Nano at it's peak ... times 10.

The significant majority of Cardano's marketing and communication efforts are geared towards the Japanese right now so it may not be so surprising that they have more conviction in the platform. But just imagining the rest of the world catching on, that thought leaves me no choice but to invest in it.

tldr: I'm not investing in the technology (I haven't done my research) but I'm speculating in its potential value (god have mercy if they start marketing out of Japan).

8 - 9 years account age. 450 - 900 comment karma.
6 points · 4 months ago

In addition to what has already been said, you should also keep in mind that the market cap is heavily affected by invisible factors such as the number of holders and coins in actual circulation. If a few large holders never sell at all (or never below a certain very high price), you could effectively remove their coins from the circulating supply, thereby reducing it and driving up the price.

There are large holders for every coin, but unexpected huge leaps in market cap for a coin could indicate that the distribution is more uneven there than elsewhere, so there are fewer genuinely circulating coins than you'd think if you look at CMC. This would make it easier to move the cap.

Redditor for 7 months.
2 points · 4 months ago

Or it simply means that investors who buy into the project want to wait until everything on the roadmap has been implemented. Not everyone in the crypto space are constantly asking the “what have you done for me lately?” question.

7 - 8 years account age. 100 - 200 comment karma.
6 points · 4 months ago

My advice is to read up on the Cardano website, Cardano roadmap website, and check out the IOHK website to get a feel for the robustness of this project. Cardano is an industrial blockchain project delivering on their roadmap, and the team is impressive and scientifically robust. Haven't seen that many PhDs and professors working on any other blockchain project.

Redditor for 5 months.
5 points · 4 months ago

Team. The team has clout in the crypto world and has some of the most transparent development (they set the standard in that regard). As far as vaporware goes, it's one of the few projects where I can say with a high degree of certainty that we can rule out an exit scam.

Redditor for 8 months.
5 points · 4 months ago

cardano has thought leadership content all over the place, and the team behind it manages an ecosystem of some of the world's most accredited research across the entire blockchain cryptosphere. If someone says they don't understand the value of cardano then they either have done 0 research, or don't understand what public blockchains are trying to do. In either case, they probably don't have the best of opinions surrounding it's worth.

Because anyone who actually takes the time to learn about it buys and holds. They don't pump it. They don't shill it. They just want to build the best blockchain solution that is humanly possible.

It's survival of the fittest. Over time all of the shitcoins will die and Cardano will just be chilling at the top since they took the time to do it right.

I’ll take your reply about Cardano as decisive shill.

But... I’ll take your reply about the nature of survival as supreme truth.

Redditor for 8 months.
4 points · 4 months ago

Just watch the vids from Charles he explains all of it in details. I am on my phone to much to type.

Just taking into account the team contracted to work on it, that alone boosts it to a top 10 coin. I really cant imagine a better team.

It's the whales. Look at the 24h volume, its always super low. Whales are just sitting on it waiting to shake the weak hands and then buy back up.

Redditor for 4 months.
4 points · 4 months ago

I've been wondering that myself. The whole peer review gimmick is silly as hell and doesn't warrant their current cap.

1 more reply

9 points · 4 months ago

Top 10 because it's the best project in crypto. If they deliver Cardano will be an absolute monster. Very impressive team so I believe they will.

superstars. just check the people at IOHK

Only one of the many reasons I believe is the calibre of team behind the project, especially Charles, who is certainly a genius in my opinion.

Listen to this talk he gave a while ago to hear for yourself:

https://youtu.be/D_QLfnucgh0

Redditor for 6 months.
3 points · 4 months ago

Basically Cardano is the Nerd’s nerd money.

Idk but now is technically the time to buy.

Redditor for 8 months.
4 points · 4 months ago

I hold ADA and the community is one of the reasons I love it. For the most part there is no insecure attacks on other coins and no baseless shilling. Mostly great discussion on tech and honest comparison to other projects. I would it's a buy but I'm buy-ist

Most github commits of any project, building toward quantum resistant platform, more secure coding language than solidity, professional seeming foundation...I don’t know more than the next guy, but there’s a non-zero chance you’re looking at google.

Trader
4 points · 4 months ago

how is it more secure than solidity?

Observer
5 points · 4 months ago

You can't hack their product if they don't have a product!!

1 more reply

Comment deleted4 months ago(2 children)
Redditor for 8 months.
10 points · 4 months ago

Cardano protocols are written in Haskell, but dapps will not need to be written in Haskell. In fact, all dapps on Ethereum can easily be switched over to cardano once smart contracts go live at the end of 2018 and beginning of 2019. I am not sure why people get held up on Haskell being used for the protocols as it has no affect on the programmers using Cardano.

Dapps wont need to be programmed in Haskell

1 more reply

Everyone here that's for ADA makes note that they consistently hit their roadmap deadlines. For one, it's not clear what the dates are on their website, maybe I need to look elsewhere? According to their roadmap on their website only one milestone is at 100%... Can someone kindly help me understand what I am missing?

7 points · 4 months ago · edited 4 months ago

The project sets hard deadlines by the Quarter, and soft updates on progress in interviews and such. For example: the next phase of the project, Shelley, is scheduled for implementation in Q2, but in interviews Charles has said it could be as early as April. They have not let me down once in terms of Quarterly deadlines, and have 90% of the time met their spoken estimations on delivery. Its a very deep project that you can't passively follow.

Understood, I appreciate you taking the time to explain that.

3 more replies

22 points · 4 months ago

It's one of the biggest mysteries in crypto. Seriously.

Redditor for 7 months.
2 points · 4 months ago

Can someone explain to me what eli5 is?

Student
7 points · 4 months ago

eli5 means "explain like I'm five". So basically the person is asking for a really simple explanation.

Redditor for 7 months.
2 points · 4 months ago

Thank you!!

Redditor for 5 months.
2 points · 4 months ago
Redditor for 4 months.
2 points · 4 months ago

Why do some noob think xvg is the next btc . Some things in life there are no answers to

So many people who are actually in the know in crypto consider Cardano a great long term hold. Coming here you see nothing but kids who see it on coinmarket cap and go "duuuur it doesn't belong there SHIT COINZ!!"

Redditor for 8 months.
5 points · 4 months ago · edited 4 months ago

How many of you guys actually understands thr crypto space ? Cardano brings us what we need.

Gentleman
Original Poster2 points · 4 months ago

Well, that's what I was trying to find out. Enlighten us.

I think the best starter would be listening to one of Charles interviews on youtube.there are two 3hour+ sessions that give a great overview of what's happening and who they are.

I think the best starter would be listening to one of Charles interviews on youtube.there are two 3hour+ sessions that give a great overview of what's happening and who they are.

Redditor for 10 months.
2 points · 4 months ago
Down with btc yeah you know me
3 points · 4 months ago

I think this is a great discussion the community should be having. My take?: Because the market doesn't truly know how to value crypto projects yet. It will take some time, but the market will mature. For now, it's overrun by whales, rumors, scams, FUD, FOMO, etc. I'm not stating any particular opinion on Cardano since I am not well researched on the project, but there are plenty of other coin valuations that just don't make sense to me. If you don't understand the valuation of a particular coin, just don't invest in it. You might miss out on some gains, but in the long run, research and knowing your investments thoroughly will get you much further.

Redditor for 7 months.
3 points · 4 months ago

I very much agree with you. People on this sub spend too much time arguing over valuations. As a group, we need to be discussing the actual projects themselves. We need to be asking more questions:

  • What is this project trying to accomplish?

  • What are the real world use cases for the project?

  • Does blockchain really need to be used to solve this problem, or would we be just as well off with centralized servers? (Because as much as this sub will argue, blockchain isn't necessary for every business aspect across the globe!)

  • What team is in charge of this project, and are they capable of seeing it through? Are they incentivized properly to carry it through (i.e. Don't have access to their coins until a certain mark on the roadmap)

  • Do they have a clear and coherent roadmap to allow investors to measure progress in both a quantifiable and qualifiable manner?

  • Where does the value of the coin come from? Is there an actual usage need for the coin or is the price solely driven up by speculation?

If we could spend more time discussing points like these, instead of arguing over which coins are shitcoins and which ones aren't, we would all be a lot more educated (and probably happier people, too!)

Investor
3 points · 4 months ago

I have no idea either, but I bought 1k ADA anyway.

Redditor for 10 months.
3 points · 4 months ago

I don't understand one thing about Cardano: how can such a big market cap project don't have a Linux wallet after 2+ years of development?

It will come, but you could compile it now if you had the skill set....

Redditor for 7 months.
6 points · 4 months ago

You'll have one in the next 30 days. They have been doing a lot of updates to the wallet's backend over the past couple months. They will likely rollout the updates for Mac and Windows along with a Linux all at once.

3 - 4 years account age. 400 - 1000 comment karma.
3 points · 4 months ago

Maybe it is not packaged for your distro yet, eg. pkg for Archlinux is available here, via AUR.

Sure, it would be cool to have a distro- independent flatpak or appimage too.

edit: missing link

Vertcoin Fan
3 points · 4 months ago

Because marketcap doesn't mean anything in crypto, it's just last price * circ supply.

This a million times.

marketcap tells you way more about a coin than price lol

Vertcoin Fan
1 point · 4 months ago

Yeah people said that when ripple/iota/ada were like cents

"It will never hit X price because marketcap"

Didn't work out

3 - 4 years account age. 100 - 200 comment karma.
1 point · 4 months ago

Great team, great project if you would have done your research you wouldn’t ask that question. Here is research I did https://youtu.be/3L09XmyrCmo

[deleted]
1 point · 4 months ago

Because people believe in whitepapers. I dont do so.

More like in roadmaps. Cardano's whitepaper (the Ouroboros one, at least) is barely readable, while their roadmap is the best for inflating the market price: good presentation, big promises, all in the future and greatly stretched in time.

6 - 7 years account age. 88 - 175 comment karma.
1 point · 4 months ago

Mmmno,

1 point · 4 months ago · edited 4 months ago

The answer is basically the same as for these coins that are consistently in top-N that nobody has a clue about: it was shilled a lot one way or the other during a bull run. Rose to the top and now kinda just rests there, and the more it stays at that level, the more confidence will there be in its stability. You may call it a "pump-and-hodl" scheme.

Basically the same process people describe when calling Bitcoin "digital gold", but on a smaller scale.

I’m staying away from this one. Products led by academics never turns out well.

Redditor for 8 months.
1 point · 4 months ago

any other example?

Moon
-1 points · 4 months ago

noone really knows, then again, why are Ripple and BCH?

11 more replies

Sia Fan
1 point · 4 months ago

New shiny tech with a really good team. Useless, but full of potential?

57 more replies

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